Top 4 Defensive Stocks That Are Ticking Portfolio Bombs

Author: Avi Kapoor | June 06, 2024 07:46am

As of June 6, 2024, four stocks in the consumer staples sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC)

• On May 9, Natural Grocers posted an increase in quarterly sales. “Second quarter results were outstanding as we delivered record quarterly sales, margin expansion, and significant earnings growth. Daily average comparable store sales accelerated to 7.5%, driven by a 3.9% increase in transaction size, including item count growth, and a 3.5% increase in transaction count,” said Kemper Isely, Co-President. The company's stock gained around 21% over the past month and has a 52-week high of $21.95.
• RSI Value: 70.92                              
• NGVC Price Action: Shares of Natural Grocers by Vitamin Cottage fell 0.8% to close at $21.42 on Wednesday.

Philip Morris International Inc. (NYSE:PM)

• On June 4, Philip Morris International revised its 2024 full-year for currency-only earnings per share forecast. For currency only, the company projects reported earnings per share of $5.77 to $5.89 (prior view: $5.70 to $5.82) at prevailing exchange rates. The company's stock gained around 4% over the past five days and has a 52-week high of $104.24.
• RSI Value: 71.31
• PM Price Action: Shares of Philip Morris International rose 0.3% to close at $104.07 on Wednesday.

Walmart Inc (NYSE:WMT)

• On June 3, Evercore ISI Group analyst Greg Melich maintained Walmart with an Outperform rating and raised the price target from $70 to $72. The company's stock gained around 12% over the past month and has a 52-week high of $67.15.
• RSI Value: 77.97
• WMT Price Action: Shares of Walmart gained 0.7% to close at $67.09 on Wednesday.

Vital Farms, Inc. (NASDAQ:VITL)

• On May 9, Vital Farms reported better-than-expected first-quarter sales results and issued FY24 revenue guidance above estimates. "2024 is off to a very strong start with record net revenue in the first quarter of $147.9 million, reflecting net revenue growth of 24.1%. Thanks to our stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, crew members, and stockholders, we are able to succeed in our mission of bringing ethical food to the table," said Russell Diez-Canseco, Vital Farms' President and CEO. The company's stock jumped around 54% over the past month and has a 52-week high is $44.81.
• RSI Value: 71.39
• VITL Price Action: Shares of Vital Farms gained 3.9% to close at $44.64 on Wednesday.

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Posted In: NGVC PM VITL WMT